Economists Are Concerned About a Slowdown in Productivity Because of the Risk

question 29

Multiple Choice

Economists are concerned about a slowdown in productivity because of the risk of higher inflation rates and a(n)

• A) loss of our ability to diversify in manufacturing.
• B) increased dependence on imported raw materials.
• C) decline in service industries that depend on microelectronics technology.
• D) potential decline in technological change that could affect our future rate of growth.
• E) fear that it will lead to an influx of unskilled workers replacing domestic workers.

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Definitions:

Purchased Goodwill

An intangible asset that arises when a company acquires another business for more than the fair value of its net identifiable assets at the acquisition date.

Market Value

The existing rate at which an asset or service is offered for buy or sell within the marketplace.

Amortize Intangible Assets

The process of systematically reducing the recorded cost of intangible assets over their useful life or legal life, whichever is shorter.

Useful Lives

The estimated time period that an asset is expected to be used by a business, contributing to its revenue generation.